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The Budget Talks -- Advantage: Republicans
Unless President Obama drastically changes his goals and his tactics, the current round of budget negotiations can only lead to deeper spending cuts. Here's why. The Two Roads to Fiscal Balance. Before we explore why the politics of budget cutting now favor the Republicans, let's keep in mind the economics: There are two possible roads to improved fiscal balance. Let's call them Road A and Road B. (By fiscal balance, I mean getting down a deficit that keeps the debt ratio stable, let's say 2 percent of GDP.)

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